XAUUSD rose more than 2% on Friday, hitting a one-week high, as weaker-than-expected U.S. non-farm payrolls data boosted hopes of a Federal Reserve rate cut and the announcement of new tariffs boosted safe-haven demand.On the economic data front
Gold prices rose more than 2% in U.S. trading on Friday (Aug. 1), hitting a one-week high, as weaker-than-expected U.S. non-farm payrolls data fueled hopes of a Federal Reserve rate cut and safe-haven demand was boosted by the announcement of new tariffs.
The U.S. Department of Labor's Bureau of Labor Statistics reported that nonfarm payrolls increased by just 73,000 jobs in July, well below market expectations of 110,000. June's data was revised down to just 14,000, indicating a significant slowdown in job growth. The unemployment rate rose to 4.2%, indicating a cooling labor market.
The jobs data was weaker than expected, but slightly higher than the market's lowest forecast. This increases the likelihood of a rate cut by the Fed later this year. As a non-yielding asset, gold typically performs better in a low-interest-rate environment.
According to CME Group's FedWatch tool, market participants now expect the Federal Reserve to cut rates twice before the end of the year, starting in September. Earlier this week, the Fed held rates steady at 4.25%-4.50%. Chairman Powell said it was too early to determine whether a rate cut would be forthcoming in September, citing inflation and employment data.
On the trade front
Trump has imposed a new round of tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, causing a global market crash.
Countries are scrambling to negotiate a better deal. In times of economic and geopolitical uncertainty, safe-haven gold is in high demand.
So far in 2025, gold prices have risen more than $400, hitting a record high of $3,167.57/oz on April 3, driven by safe-haven demand and central bank buying.
Weak jobs data also sent the dollar lower against major currencies, further supporting gold prices as a weaker greenback makes gold more attractive to investors holding other currencies.
Investors' Attention Turns to September FOMC Meeting
Markets are now focused on the September Federal Open Market Committee (FOMC) meeting. Facing the dual pressures of volatile inflation, slowing employment and escalating global trade tensions, the Fed will have to balance its inflation target with economic growth.
Markets are betting on the Fed to begin a new round of easing, and gold, as a hedge against currency devaluation and economic uncertainty, is expected to continue to benefit.
Gold prices have risen more than 30% year-to-date, reflecting the market’s preference for safe-haven assets. If weak U.S. economic data continues in the coming weeks, or if new geopolitical conflicts emerge, gold prices are expected to continue their upward trend, challenging new highs for the year.
Summary, Commentary
Weak employment, new tariffs and a slumping stock market have all contributed to a strong recovery in gold prices. With the possibility of the US Federal Reserve cutting interest rates in September increasing significantly, gold market sentiment has warmed and risk aversion has returned.
Investors will need to keep a close eye on inflation data, Fed officials’ speeches, and whether Trump continues to stoke trade tensions, which could lead to greater volatility in the gold market.
Against the backdrop of the unexpected non-farm payrolls report and moderate inflation, the market has essentially “locked in” the possibility of a rate cut in September, but whether the cut will be 25 or 50 basis points, and whether there will be further rate cuts in the future, will depend on the interaction between the Fed members’ verbal guidance and market expectations.
![GOLD MARKET ANALYSIS AND COMMENTARY - [Aug 04 - Aug 08]](https://s3.tradingview.com/v/vsak8bLZ_mid.png)
Technical Outlook Analysis
XAUUSD On the daily chart, affected by the sudden weak data that shocked the market, gold broke most of the technical structure that was leaning towards the downside. Price action was pushed above the EMA21, while the short-term downtrend channel was also broken above and the Relative Strength Index crossed above 50.
These are the initial conditions for a short-term uptrend. But to confirm an uptrend and a new uptrend in the near term, gold needs to continue to break above the 0.236% Fibonacci retracement level (3,371 USD) first, then the target will be around 3,400 USD in the short term.
If gold breaks above $3,400 again, traders should set a new target of $3,430 in the short term, rather than $3,450 which is the all-time high.
Motivationally, the RSI has not reached oversold territory to provide pure reversal support, but it has been pushed by the market shock after the NFP data release, so this rally may not be sustainable in a purely motivational way either.
Overall, gold is now more bullish after a rally on Friday, opening up initial conditions for expectations of a new uptrend. And the notable points will be listed as follows.
Support: 3,323 – 3,310 – 3,300 USD
Resistance: 3,371 – 3,400 – 3,430 USD
SELL XAUUSD PRICE 3376 - 3374⚡️
↠↠ Stop Loss 3380
→Take Profit 1 3368
↨
→Take Profit 2 3362
BUY XAUUSD PRICE 3327 - 3329⚡️
↠↠ Stop Loss 3323
→Take Profit 1 3335
↨
→Take Profit 2 3341
Note
Spot gold today, after consolidating at high levels, has now rebounded ahead of the US session and reached $3,370. In terms of actual buy/sell orders, 50.7% of orders were buy and 49.3% were sell, indicating that the sentiment is still slightly bullish.Trade closed: stop reached
Note
▫️Spot gold hit $3,380 an ounce, up 0.19% on the day.Note
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🔰| Forex trading
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.